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Omnichannel Commerce: The Future of Retail in Australia

The retail industry is undergoing a major transformation. In the past, consumers would either shop in-store or online. But today, more consumers are engaging in omnichannel commerce – where retail purchasing ultimately occurs across both online and in-store environments.

This is great news for merchants, as it gives them the opportunity to reach more customers and boost sales. But it also presents some challenges. Merchants need to be able to provide a seamless shopping experience across all channels, and they need to have the right payment solutions in place to achieve this seamlessly.

Payment service providers (PSPs) play a critical role in helping merchants succeed in this new era of omnichannel commerce. They can provide merchants with the payment terminals and solutions to accept payments in-store, online, and on mobile devices.

Recently, the leading European PSP, Mollie expanded its in-store payment options to offer PAX Technology’s award-winning, Android-based payment terminals, the A920 and A920Pro. The PCI-DSS Level 1 certified terminals were chosen due to their varied functionalities for easy-to-use and secure payment, including accepting of next-generation payment methods such as QR code, Buy-Now-Pay-Later, Apple Wallet, Samsung Pay, contactless payment, as well as traditional chip and PIN.

In addition to the physical terminals, PAX also offers Mollie a marketplace app solution called MAXSTORE to future-proof its ambitions for further expansion. MAXSTORE gives merchants access to a wide range of third-party apps that can be used to enhance the shopping experience for their customers. Customer-centric engagement activities, including loyalty programmes, gift cards, personalised marketing, and more are all programmable by the PSP as well as the merchant via the MAXSTORE app.

According to the Payments System Board Annual Report 2021-22, the number of transactions processed by PSPs in Australia was 10.4 billion in 2022. This represents an increase of 10% from the previous year.

The value of transactions processed by PSPs was $268.5 billion in 2022, an increase of 8% from the previous year.

The most popular payment methods in Australia in 2022 are:

  • Debit cards: 46% of all transactions.
  • Credit cards: 34% of all transactions.
  • Direct entry: 13% of all transactions.
  • PayWave/PayPass: 5% of all transactions.
  • BPAY: 2% of all transactions.

The growth in the number of transactions processed by PSPs is being driven by the increasing popularity of more convenient payment methods. The use of contactless and digital payment solutions is rapidly replacing traditional physical payment cards swipe/insert functionality.

However, Australian PSPs face several challenges in terms of better service delivery including:

  • Increasingly complex payment landscape: New methods of payment including tokenised digital payment cards, open banking as well as Central Bank Digital Currencies are making more difficult for PSPs to stay on top of new preferred payment methods.

  • Regulation compliance: PSPs are subject to a range of regulations, such as the Payment Card Industry Data Security Standard (PCI DSS). Achieving PCI DSS Level 1 certification independently can cost more than $1 million and a 2-year review.

  • Fraud detection and protection: Card fraud and chargebacks can ruin a PSPs business and reputation.

  • A seamless customer experience: PSPs need to provide a seamless customer experience, regardless of the payment method used. This can be challenging, as different payment methods have different processing requirements.

  • The need to compete with new entrants: The payments market is becoming increasingly competitive, with new entrants entering all the time. This can make it difficult for PSPs to maintain their market share.

To meet these challenges, here are some key recommendations that can ensure continued success for Australian PSPs:

    • Invest in next-generation payment terminals: Through PAX, a wide range of next-generation payment terminals are offered that are designed to meet the needs of merchants in the omnichannel era. Features such as contactless payments, QR code payments, and EMV chip and PIN payments are all included.

    • Partner with third-party app providers: PAX partners with third-party app providers to offer merchants a wider range of features and services. These apps can be used for loyalty programs, gift cards, marketing, and more. MAXSTORE for example, is a marketplace app solution that gives merchants access to a wide range of third-party apps.

    • Focus on security: PAX payment terminals are PCI-DSS Level 1 certified, which means they meet the highest security standards. MAXSTORE also offers several security features, such as two-factor authentication and encryption built into devices.

    • Embrace new technologies: PAX is currently developing new solutions that take advantage of emerging technologies such as blockchain and artificial intelligence to improve its products and services.

    • Be transparent about fees: Merchants should easily be able to find out what the fees are for each payment method – a feature available from PAX.

    • Provide excellent customer service: Merchants can contact PAX for help with any problems they may have 24/7 digitally or via phone.

The Current Landscape in Australia

The Australian in-store retail market is worth billions of dollars, and it is expected to grow in the coming years. PSPs that can help merchants succeed in this market will be well-positioned for future success.

Here are some final figures around the size of the in-store retail transactions in Australia:

  • The value of in-store retail transactions in Australia was AUD$280 billion in 2022.

  • The number of transactions processed monthly in-store in Australia was 1.2 billion in 2022 with the figure forecasted to reach 1.5 billion by 2027.

These figures show that the in-store retail market is still a major force in the Australian economy. PSPs that can help merchants capture a share of this market will be well-positioned for success. PAX Technology can ensure successful delivery for whatever the future of Australian commerce becomes.


  • Payments System Board Annual Report 2021-22
  • Payments System Board (PSB) projections
  • Australian Bureau of Statistics
  • Statista
  • Juniper Research